Suraj Estate Developers Faces Mixed Financial Performance Amidst Sales Growth and Operational Challenges

Suraj Estate Developers, a small-cap player in the realty sector, has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending March 2025. The company's financial score has notably declined, indicating challenges in certain key performance metrics.
On a positive note, Suraj Estate has reported a significant growth in net sales over the last six months, reaching Rs 306.33 crore, which marks an increase of 48.45%. Additionally, the profit after tax (PAT) for the nine-month period stands at Rs 70.10 crore, reflecting a growth of 32.79%. The operating profit to interest ratio is also noteworthy, recorded at 7.53 times, showcasing strong operational efficiency.

However, the company faces hurdles as well. The profit before tax, adjusted for other income, has decreased to Rs 25.32 crore, down 24.1% compared to the previous four-quarter average. The PAT for the quarter has also fallen to Rs 18.29 crore, a decline of 27.7%. Furthermore, the lowest recorded operating profit to net sales ratio at 22.05% and an earnings per share of Rs 3.95 indicate areas needing attention.

In terms of market performance, Suraj Estate's stock has shown mixed results compared to the Sensex. Over the past week, the stock returned 0.5%, while the Sensex experienced a slight decline of 0.35%. However, year-to-date, Suraj Estate has faced a significant drop of 46.95%, contrasting with the Sensex's gain of 4.06%. This disparity highlights the challenges the company is navigating in a competitive market landscape.